Originally from Business Disputes In China - 3rd Edition

1. Please give a brief overview of the main dispute resolution methods used in your jurisdiction to settle large commercial disputes, identifying any recent trends.

Like in many other jurisdictions, litigation and arbitration are the main dispute resolution methods to settle large commercial disputes. While litigation is more commonly used in domestic commercial disputes, arbitration is the most popular dispute resolution method among foreign parties who conduct business in China or with Chinese parties.

Although there are still a considerable number of cases brought to domestic Chinese arbitration commissions (for example, the China International Economic and Trade Arbitration Commission (CIETAC)) each year, many foreign investors would still prefer to have their disputes arbitrated overseas.

Court Litigation – General

2. What limitation periods apply to bringing a claim and what triggers a limitation period? Please briefly set out any different rules for particular areas of law relevant to large commercial disputes, for example contract, tort and land disputes. The ordinary limitation period is two years. A limitation period runs from when the injured party knew or ought to have known of the alleged infringement.

There are several exceptions to the two-year limitation period. For example, the limitation period is: